Electric Vehicle Sales in May 2025 surpass the 4% market share milestone for the first time.
In a significant development for India's automotive industry, electric vehicle (EV) sales have witnessed a substantial growth, marking an important milestone in the country's journey towards automotive electrification.
According to the Federation of Automobile Dealers Associations (FADA), total electric passenger vehicle sales rose by 53.24% on a year-on-year basis in May. However, the overall passenger vehicle segment shrank 13.6% month-on-month and 3.1% year-on-year.
Tata Motors, the market leader in the electric car segment, sold 4,351 units in May, but reported an 18% decline in EV sales compared to the same month last year. MG Motor India, now backed by the JSW Group, posted a staggering 149% year-on-year growth, retailing 3,765 electric cars in May. Mahindra & Mahindra followed at third place, recording 2,632 EV sales in May. Together, these three companies accounted for more than 87% of all electric car sales last month.
The growth in electric vehicle sales can be attributed to advances in battery technology, longer driving range, and more affordable electric models. However, for consumers planning to buy an EV shortly, longer waiting periods or limited stock for certain models, especially higher-end or performance variants, could occur due to looming supply chain concerns.
Geopolitical tensions, particularly the recent India-Pakistan war, disrupted sales in border states like Jammu & Kashmir, Punjab, Rajasthan, and Gujarat. This concentrated market share suggests that, for now, a handful of players continue to drive the consumer shift towards electric cars in India.
FADA CEO Saharsh Damani called the growth in electric vehicle sales an "important milestone" in India's journey towards automotive electrification. However, he also warned that if the situation does not improve, it may lead to a slowdown in EV production and retail deliveries due to supply bottlenecks caused by China's restrictions on the export of rare earth magnets, critical for electric motors.
Despite the growth, the India EV market share remains stuck at around 2% compared to global sales hitting a record 17 million in 2024. On a month-to-month basis, electric vehicle sales increased by only 0.58%. However, electric passenger vehicles have crossed the 4% mark in overall car sales in India for the first time, according to FADA.
This means more value-driven EV options are now becoming viable alternatives to petrol and diesel vehicles, especially in urban centres. For consumers, this is good news as they can now consider electric vehicles as a viable option for their daily commute, contributing to a greener and cleaner environment.
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